The Red Sea crisis and the upcoming festivities in China will have a major impact on maritime transport. With the recent increase in attacks on cargo ships, shipping companies around the world are moving away from the Red Sea – the shortest route from Asia to Europe via the Suez Canal. Shippers have been forced to choose alternative routes rather than the usual ones, leading to longer delivery times, congestion and reduced container availability. The alarming developments in the Red Sea have also led to a significant increase in sea freight prices over the last month.
The problem is compounded by the upcoming holiday period in China, which affects the availability of channels every year. These festivities, together with the factors described above, are likely to further affect the movement of goods. The Chinese New Year this year starts on 10 February and officially runs until 15 February, but as a reminder, many companies start celebrating earlier and reopen their businesses later.
Shipping companies have informed that they will continue to optimise parcel volumes at the beginning of the year, which will reduce seat availability and increase demand. High freight prices are likely to persist at least until the end of February, and it remains to be seen whether positive developments will be seen in the meantime and whether stability in sea freight will return.
The maritime transport situation will undoubtedly have an impact on other modes of transport as importers look for alternative solutions to deliver goods as quickly as possible. In the Asia-Europe direction, we are already seeing the impact and growth of air or rail transport.
For more information, please contact your manager or email ocean@ace.lt. We keep our customers informed of the situation and offer the best solutions and alternatives to sea transport where appropriate.
ACE Logistics
